1997-11-03 CC Agenda/PacketAT_BERTVILLE CITY COUNCIL
AGENDA
November 3 , '11997
7 : 00 PM;
1. CALL TO ORDER/ROLL CALL/ADOPT AGENDA
(Mayor/Clerk/Council)
2. MINUTES (council)
October 20, 1997, Regular Meeting
3. AUDITING CLAIMS (council)
Check #'s 11296 - 11314
4. CITIZEN FORUM - 10 Minute Limit
5. CONSENT AGENDA [*1 (council')
a.
Financial Statement (October 1
- October 28)
b.
Cancel Economic Development
Meeting scheduled
for
November 12, 1997 - Reschedule
to after the first of
the
year
C.
Approve reduction in Fairfield's
Letter of Credit
to
$35,000 as recommended by City
Engineer Carlson
d.
Approve reduction in LOC for
Parkside 4th/Grading
to
$35,000 as recommended by City
Engineer Carlson
e.
Approve reduction in LOC for Parkside 3rd to $45,000
and
reduction to existing bond to
$25,000 as recommended
by
City Engineer Carlson
6. SPECIAL ORDER
Barthel Bus Garage TIF #9 Public Hearing
a. RESOLUTION #1997-•52 (R.ESOLUTION APPROVING MODIFIED
DEVELOPMENT' PROGRAM FOR DEVELOPMENT DISTRICT NO. 1
AND A TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT
FINANCING DISTRICT NO. 9
7. DEPARTMENT BUSINESS
a. GENERAL GOVERNMENT
1) River Rider and Volunteer Transportation - Bert
Bailey
2) Planning & Zoning Commission Vacancy - Consider
Councilmember appointee (D. Vetsch Term)
to
b . LE IAL
1) Grading Agreement for Cedar Creek Golf Course
2) Grading Agreement for Mike Potter property
C. ENGINEERING
None
d. PUBLIC WORKS
- Loader/Equipment Purcaase (not received)
e. PERSONNEL COMMITTEE
Employment Process status Update
8. ADJOURNMENT (council)
UPPING P=INGS/ IMPORTANT DATES
November
10
Joint Powers Board - Hockey Arena
5:30 PM
November
10
Planning & Zoning Commission
7:OOFM
November
11
Veteran's Day - Legal Holiday - Office Closed
November
12
Special Joint Powers Water Board
7:00EM
November
17
Budget Meeting
6:00 Hd
November
17
Regular City Council Meeting
7:00EM
November
24
Joint Powers Board - Water
7:00EM
November
25
Planning & Zoning Commission (optional)
7:00 EM
November
26
Special Joint Powers Water Board
7:00 HAS
November
27
Thanksgiving Day - Legal Holiday - Office
Closed
November
28
Legal Holiday - Office Closed
December
1
Regular City Council Meeting
7:00EM
December
8
Truth in Taxation Hearing
7:00EM
December
8
Joint Powers Board - Hockey Arena
7:00 H,i
December
9
Planning & Zoning Commission
7:00 PM
December
15
Continuation of Truth in Taxation
7:OO HM
(if necessary)
December
15
Regular City Council Meeting
7:OOEM
k
ALBERTVILLE CITY COUNCIL
November 3, 1997
Albertville City Hall 7:00 PM
PRESENT: Mayor Mark Olsen, Councilmembers Patricia
Stalberger, Duane Berning, Robert Gundersen, and John Vetsch, City
Clerk Linda Houghton, City Attorney Michael Couri and City Engineer
Peter Carlson
Mayor Olsen called the regular meeting of the Albertville City
Council to order.
The agenda was amended by adding the following:
Item 3 - Delete Check #11299
Item 5f - Approve Fire Service Contracts with the Cities of
St. Michael and Otsego
Item 7a(3)_ - Queen Committee
Item 7c(2) - CSAH 19/37 Trails & Signage
Item 7d(2) - Directive to Public Works Department personnel to
make no alterations to equipment
Berning made a motion to approve the agenda as presented.
Stalberger seconded the motion. All voted aye.
The minutes of the October 20, 1997, meeting were amended as
follows:
Page 3 - Insert Paragraph 4 - Councilmember Berning returned
to the meeting at 8:05 PM.
Page 4, Paragraph 2 - Corrected to state that the Otsego
committee members were uncertain if there was interest in improving
the shared roads.
Page 4, Paragraph 8 - H63H is changed to 863H.
Berning made a motion to approve the minutes of the October 20,
1997, meeting as amended. Stalberger seconded the motion. All
voted aye.
Gundersen made a motion to approve payment of Check #'s 11296
- 11298 and Check #'s 11300 - 11314 as presented. Vetsch seconded
the motion. All voted aye.
There was no one in the audience who wished to address the
Council under Community Forum.
Berning made a motion to approve the Financial Statement for
the period October 1 - October 28, 1997, as presented. Vetsch
seconded the motion. All voted aye.
Berning made a motion to cancel the Economic Development
meeting scheduled for November 12, 1997, until after the first of
the new year. Vetsch seconded the motion. All voted aye.
1
Berning made a motion to schedule special City Council meeting
for the purpose of an Economic Development 'Workshop on November 12,
1997, at 7:00 PM and invite the Planning Commission and the
Economic Development Commission members. Gundersen seconded the
motion. All voted aye.
Since City Attorney was not yet present, Mayor Olsen moved
ahead to the engineering department.
City Engineer Pete Carlson reported that there were no CMIF
grants available for a city-wide storm water management plan. The
CMIF grants are only available for specific areas that require
funding for specific economic development projects.
Carlson also reported that the Shared Roads Grant through the
Minnesota Board of Innovation does not fund public works paving
projects. Therefore„ funding to pave the joint roads between the
cities of Albertville and Otsego is not available as an option.
City Attorney Couri reported that Keith Franklin of Franklin
Outdoor Sign is still interested in purchasing the triangular piece
of City property that, abuts his property and on which a portion of
his driveway is located. Couri stated the property is likely
unbuildable due to its irregular triangular shape. Franklin
originally offered to purchase the land for $500. City
Administrator Hale checked with Wright. County Assessor Greg
Kramber, who indicated the market value of the property was $7,200,
although Kramber believed it was unlikely that the parcel could be
sold for that amount due to its limited use and questions about its
buildability.
Keith Franklin told the City Council his father, Jim Franklin,
was willing to offer $1,,500 for the parcel. The purpose would be
to put the parcel back on the tax rolls and the City would annually
collect additional tax dollars equivalent to $400 (Assitant City
Assessor Kramber).
Councilmember Gundersen stated he could see no reason for the
City to continue to hold the parcel. Councilmember Vetsch stated
he is willing to sell the parcel for the market value of $7,200.
Mayor Olsen questioned :if Franklin wculd be interested in @L lease
situation. Franklin stated he is not.
Councilmember Berning is concerned that the Planning
Commission may want an easement for a snowmobile trail over this
parcel.
Gundersen made a motion to sell the parcel to Franklin Outdoor
Sign Company for $2,000, contingent upon Franklin providing an
easement for a snowmobile trail on the property and contingent upon
an agreement that no advertising sign will be placed on the
property. Stalberger seconded the motion. Stalberger, Gundersen,
N
Berning and Olsen voted aye. Vetsch voted no. The motion carried.
Councilmember Berning removed himself from the Council at 7:45
PM.
City Attorney Couri reviewed the Vetsch Custom Cabinet TIF
Contract with the Council. City is not generally obligated in the
TIF district. It is a pay-as-you-go, i.e. the City will reimburse
the Vetsch's for qualifying expenses only after taxes are
collected.
Olsen made a motion to approve the contract for a TIF
Agreement on Vetsch Custom Cabinets with minor corrections to be
made by Kennedy & Graven,, special legal counsel. Gundersen
seconded the motion. All voted aye.
Couri gave a brief overview of the proposed Barthel Bus Garage
TIF #9. The Council will conduct a public hearing on the
establishment of the TIF district on November 3, 1997.
Couri explained that the City does not have enough easement
over the Savitski property located on the south side of the new
County Road #37 to construct. a trail. The Savitski's have offered
to sell the additional land necessary for the trail for $2 per
square foot, which is higher than the cost of the -other right of
way purchases, plus concessions on drainage and ponding on Mike
Savitski's site. Couri recommends that the City direct the County
to leave the trail area gravel but to restore up to the trail.
Olsen made a motion directing the administrator to contact
the Wright County Engineer and request that the City's right of way
along CSAH 37 from CSAH 19 to Lambert. Avenue be left gravel for a
paved trail to be added in the future but to restore all excess
right-of-way not necessary, for the trail with black dirt and
seed/sod. Vetsch seconded the motion. All voted aye.
Couri reviewed the All -Metro Builders zoning violation. The
business is currently a legally, non -conforming use in a
residential district. The cityy's Zoning Ordinance prohibits
expansion of a non -conforming use.
The Planning Commission and the City Council have previously
denied the rezoning to B-3 for All -Metro Builders. Councilmember
Vetsch stated he believes the property should be zoned to allow All
Metro Builders to legally expand its operation and to spot zone if
required.
The attorney, the planner, the administrator and the building
official will meet with All Metro Builders to discuss the situation
and make a recommendation to the Council.
Vetsch made a motion directing the city attorney to notify ISD
3
k
#885 that the electronic sign at the high school site has not
received a building permit, is therfore illegal and will be dealt
with in accordance with City ordinance. Gundersen seconded the
motion. All voted aye.
Councilmember Berning reported. that during the Transportation
Committee the City of Otsego indicated it is not interested in
improving any shared roads at this time. They agreed to meet again
at a later date. Otsego also indicated its lack on interest in
vacating Kadler Avenue.
Berning made a motion to approve payment of $45,000 to Keuchle
Underground for installation of the 36" storm sewer pipe under the
railroad tracks, with funds from the remaining balance in the TIF
#5 and the additional balance from the storm water fund. Vetsch
seconded the motion. All voted aye.
City Engineer Carlson presented the Feasibility Study for the
NE Sanitary Sewer and Water Main Extension Project. The project
extends water and sanitary sewer to the NE quadrant of the City
(the areas between and around School and Mud Lakes). Proposed TAC
fees are $1500 per acre for sewer and $1225 per acre for water.
Berning made a motion to adopt RESOLUTION #1997-53 titled
RESOLUTION ACCEPTING THE FEASIBILITY STUDY AND ORDERING A PUBLIC
HEARING FOR THE NORTHEAST SANITARY SEWER AND WATER MAIN EXTENSION.
Vetsch seconded the motion. All voted aye.
Berning made a motion to approve the recommendation from the
Public Works Committee that the city's maintenance worker will not
engage in researching bids and quotes unless authorized by the City
Council and/or City Administrator„ Vetsch seconded the motion.
All voted aye.
Berning made a motion to approve the quote from Hoglund Bus
Company to repair/replace the kingpins in the Ford Dump Truck at a
cost of $1,023.80. Gundersen seconded the motion. All voted aye.
Vetsch made a motion to acquire through a lease/purchase a
H63H Bobcat with grader ba.r, snow blower, broom and snow bucket at
a cost of $34,000, less trade-in value of the city's tractor and
loader (between $2,000-$3,000), as recommended by the Public Works
Committee. Stalberger seconded the motion. All voted aye.
Berning made a motion to adopt ORDINANCE #1997-15 titled AN
ORDINANCE AMENDING THE ALBERTVILLE SIGN ORDINANCE (1987-3) RELATING
TO COMMERCIAL/INDUSTRIAL REAL ESTATE SIGNS AND WIND LOAD
REQUIREMENTS as recommended by the Planning Commission. Vetsch
seconded the motion. All voted aye.
The Planning Commission has found that a Comp Plan/Zoning Map
amendment to rezone the properties on either side of CSAH 19 from
E
57th Street to 50th Street is premature and will not call for a
public hearing.
Vetsch made a motion tabling indefinitely further discussion
on the proposed rezoning issue and Comp Plan/Zoning Map amendment
for properties oneither side of CSAH 19 from 57th Street to 50th
Street. Olsen seconded the motion. All voted aye.
Public Safety Committee Member Gundersen briefed the Council
on the ordinance for rental properties being researched by the
Committee and the progress on a fire hall site determination.
City Clerk Houghton reported that the applications for the
positions of administrator and maintenance worker II have been
preliminarily screened and scored according to the form approved by
the Personnel Committee. The Personnel Committee will review the
preliminary findings at their meeting on October 21.
Berning made a motion to adjourn at 10:50 PM. Gundersen
seconded the motion. All voted aye.
Mark Olsen, Mayor
Linda Houghton, City Clerk
5
3
CITY OF ALBERTVILLE
BILLS TO BE PAID
November 3, 1997
Check No.
Vendor
Reason
Amount
11296
Aspen Equipment Co.
Springs
469.42
11297
D & H Fencing Co.
City Park Fence
410.00
11298
Delta Dental
Group Insurance
112.65
11299
Dott International
Grave Markers
533.18
11300
Granite Electronics
Repair FD Radio
254.00
11301
Hoglund Bus Co.
Repairs Ford Truck 848.29
11302
Honey -Do Lawn Service
October
155.49
11303
Long Lake Tractor
Service Call
1.90.37
11304
Medica
Group Insurance
930.79
11305
Monticello, City of
Animal Control
180.00
11306
Neenah Foundry Co.
Grate
331.19
11307
Office Max
Supplies/Chairs
1,425.76
11308
PSG
November WWTF
7,782.59
11309
Radzwill & Cou,ri
Legal Services
5,914.50
11310
SEH, Inc.
Engineering
19,197.52
11311
Sprint
Monthly Service
340.68
11312
Wr. . Co. Treasurer
Coop Purchase
► k 25.00
11313
Wright Recycling
September
1,028.50
11314
Burschville Construction
Marx/Hennum
3,000.00
Total $
43,129.93
f
CITY OF ALBF. RTVITT
FINANCIAL STATEMENT
October 1 - October 28, 1997
Beginning Cash Balance October 28, 1997
INCOME (Oct. 1 - Oct. 28)`
Building Permits
186,055.36
Donations - Christmas
3,000.00
Fire Aid
10,280.00
Fire Contract -
6,121.73
Interest - September
343.90
Liquor Licenses
4,000.00
Loan Payment - Fraser
689.06
Sewer License
45.00
Sewer/Storm Water
43,502.37
Special Assessments
276.83
Title Search
60.00
Miscellaneous
185.65
TOTAL INCOME
254,559.90
Deposited in Money Market Savings Account 136,444.44
EXPENSES
Check Vs 11232 - 11236
and #11238 - 11264
(Approved 10/6/97) 62,355.12
Check Vs 11265 - 11288
(Approved 10/20/97) 56,066.27
Preapproved Checks 52,688.54
(List Attached)
TOTAL EXPENSES 171,169.93
Ending Cash Balance October 28, 1997
$299,036.84
$246,042.37
INVESTHMS :
CD #9226 - Alb. Development Corp. matures 10/30/97
CD #300116 - AFD - matures 12/26.97 @ 4.6%
CD #22202 - matures 4/07/98 @ 6.12%
Dain Bosworth Investments (9/30/97)
TOTAL INVESTMENTS
Money Market Savings Acct. (10/28/97)
7,492.14
24,618.92
554,777.10
1,351,662.34
$1,938,550.50
$749,688.32
t
CITY OF ALBERTVILLE
PREAUTHORIZED CHECKS ISSUED
October 1 - October 31, 1997
Check No. Vendor
Reason
Amount
Payroll
Ending 09/26/97
Ck. #1976-1979
3,113.34
Payroll
Ending 10/10/97
Ck. #1980-1982
2,840.17
11289
Kenco Construction
TAC - Fairfield
9,000.00
11290
Post Office
Refill Meter
250.00
11291
Wr. Co. -Administrator
Balance of Peterson
29,225.94
Condemnation
Payroll
Ending 10/24/97
Ch. #1983-1985
2,846.18
Elected
Officials Payroll (Oct.)
Checks 1986-1997
1,006.60
11292
Highland Bank
October Federal Tax
3,375.37
11293
MN Dept. of Revenue
October State Taxes
589.20
11294
PERA
10/11- 10/24
349.74
11295
USCM Midwest
Payroll Deduction
92.00
TOTAL $
52,688.54
OCT-28-97 11:20 AM WRIGHT-HENNEPIN ELECTRIC 612 477 3054 P.02
EC'ONOMic DEVELOPMENT PARTNERSHIP Or WRIGHT COUN-1-Y, MINNESOTA
A NUN-PRo1 nT PRIv,V11RUBLIC I ARTNr.RSHiY
October 28, 1997
Mr. Garrison Hale
City of Albertville
PO Box 9
Albertville, MN 55301
Dear Mr. I sale,
As we discussed this past Monday, the Partnership would be happy to facilitate a
workshop cxPloring the concepts and tools of economic development. However, the
November 12 date we discussed will not be feasible due to the conflicts involved with
bringing; together all the needed parties and producing a quality presentation in such a
short time frame.
We would be happy to schedule a workshop for after the first of the year as schedules
become more available. The Partnership is also considering hosting an economic
development seminar this spring at which concepts, tools, and success stories would be
discussed- Such a forum should provide the council with the basic economic development
1nforinatlon they are looking for, if yuu or your council have any questions or concerns,
please feel free to contact me at 477-3086.
Sincerely,
Marc Nevinski
Executive Director
iV, �Vor 1( J4 t':1.1 LJGVGJIO(UV Jnn al. t,LVLU ALbtXIVILLr, (,III IQ,JUUL/UU2
fir► MEMORANDUM
0 ST. PAUL, MN C MINNEAPOLIS, MN ■ ST. CLOUD, MN ❑ CHIPPEWA FALLS, W1 ❑ MADISON. WI 0 LAKE COUNTY, IN
TO: Linda Houghton
City Clerk
Albertville, Minnesota
FROM: Peter J. Carlson, P.E.
City Engineer
DATE: October 28, 1997
RE: Letter of Credit Reduction
Parkside 4th Addition
Albertville, Minnesota
SEH No. ALBEV9705.00
I have reviewed the remaining work to be completed for this project and recommend that the letter
of credit be reduced to no less than $35,000.00
GAUPPERWARLSOMPARK4. M
k
An A f rrnarive Ac91nn.
Equal Uppar(z(nny liniploycr
r SC
�� MEMORANDUM
AAA
5EH
❑ ST. PAUL, MN ❑ MINNEAPOLIS, MN ■ ST. CLOUD, MN Q CHIPPEWA FALLS, M ❑ MADISON. W/ O LAKE COUNTY, IN
TO: Linda Houghton
City Clerk
Albertville, Minnesota
FROM: Peter J. Carlson, P.E.
City Engineer
DATE: October 28, 1997
RE: Letter of Credit Reduction
Parkside 4th Addition
Albertville, Minnesota
SEH No. ALBEV 9705.00
1 have reviewed the remaining work to be completed for this project and recommend that the letter
of credit be reduced to no less than $35,000.
djg
]:1ALBE V %970S%C 0 RR',0C-29A.97
An Afnnatire Action,
Equal Opportunity Employer
PILOT
LAND DEVELOPMENT COMPANY
October 20, 1997
Mr. Pete Carlson - SEH
c/o Mr. Gary Hale
City Administrator
5975 Main Avenue NE.
Albertville, MN 55301
RE: Letter of Credit Reductions for Parkside 4th Addition, grading release
Dear Mr. Carlsson:
During 1997, substantial work has progressed on the project. Pilot Land completed and paid both our
grading contractor and utility contractor for their entire work contracts. In addition, the entire project has
had the first lift of asphalt paved, street signs ordered, and evergreen trees planted along the easterly
boundary. The balance of work will occur in 1998.
At this time, Pilot is forwarding a request to lower the existing surety based on work completed. Since all
work was subject to inspection by the City, we believe a note accepting the utility piping is reasonable. Our
lien waivers are included.
$19,635 of work remains for LaTour to do. The offsite improvements of sod and trees and driveways are
($1300 per lot/2 = $650) * 17 lots=$11,050. Per the City attorney, actual costs can be used for off site
surety since there is zero risk that half of the houses will be built without driveways, sod and trees.
Furthermore, any title company will require escrow for the driveway at closing if not completed. during the
winter and the City won't grant a CO if not in during the summer. Therefore, the concept of a driveway
escrow should be reevaluated and removed. Until that happens, the LOC. could be reduced to $30,685.00
There is a grading agreement with the City which includes Parkside 3rd, Parkside 4th, and Center Oaks.
Grading is now complete for the development and LaTour is dormant seeding all disturbed areas. As such a
release from the LOC. is appropriate. This would leave only Center Oaks named on the existing LOC.
As worst, I have projected about $2,500 to cover any follow-up seeding in 1998. Please schedule this item
for the first Council meeting in November and notify our bank accordingly upon your concurrence with my
math above. If you have any questions, please contact me.
Sincerely,
Donald Jensen
Land Development Director
attachment: pay requests, lien waivers
psd4srtydoc
13736 Johnson Street NE • Ham Lake, MN 55304 • 757-9816 • Fax: 757-4094
MEYER-ROHLIN, INC.
ENGINEERS -LAND SURVEYORS 1111 Hwy. 25 N., Buffalo, Minn. 55313 Fax 612-682-9492
Phone 612-682-1781 1-800-563-1781
September 29, 1997
Mr. Don Jensen
Pilot Land Development Company
13736 NE Johnson Street
Ham Lake, iVI1V' 55304
RE: Parkside 4`h Addition
Street and Utilities Improvement Project
Albertville, MN
Latour Partial Payment No. 2
Mr. Jensen:
The contractor for the above -referenced project has requested partial payment for work
completed to date. Attached you shall find the quantities for the work performed. We,
therefore, recommend Partial Payment No. 2, in the amount of $36,400.06, be sent to Latour
Construction, Inc., 2134 County Road 8 NW, Maple Lake, MN 55358.
If you have any questions or comments, please do not hesitate to contact me.
Sincerely,
MEY R-RO LIN, INC.
Chris unnington
Project Engineer
cc: File 96189
Thore P. Meyer, Professional Engineer Robert Rohlin, Licensed Land Surveyor
Parkside 4th Addition Latour Payment No. 2
Street and Utilities Improvement Project 29Sep-97
Albertville, MN
Rid A
Item
No.
Item
Unit
Bid JQnty
Qtny
to Date
Rem
Qnty
Qnty
this Est
Price
Amount
this Est
Amount
to Date
1
12" (12-14')
LF
01
113
-113
0
$22.80
$0.00
$2,576.40
2
12" (14-16')
LF
0
284
-284
0
$24.80
$0.00
$7,043.20
3
12" (16-18')
LF
398
291
107
0
$26.80
$0.00
$7,798.80
4
12" (18-20')
LF
430
125
305
0
$28.80
$0.00
$3,600.00
5
MH 48"
EA
3
3
0
0
$1,100.00
$0.00
$3,300.00
6
MH 48" ex
LF
35.7
35.5
0.2
0
$79.00
$0.00
$2,804.50
7
Adj ex MH
LF
2.61
1.3
1.3
1.3
$161.00
$209.30
$209.30
8
San service
EA
161
16
0
0
$88.00
$0.00
$1,408.00
9' .
4" PVC
LF
642
756
-114
0
$5.40
$0.00
$4,082.40
10
Lift sta rem
LS
1
1
0
1
$980.00
$980.00
$980.00
11
JAbandon 12"
LS
1
1
0
0
$440.00
$0.00
$440.00
12
IDensity
EA
20
17
3
0
$41.00
$0.00
$697.00
Total Bid A = $1,189.30 $34,939.60
Rid R
Item
No.
Item
Unit
Bid
Qtny
Qnty
to Date
Rem
Qnty
Qnty
this Est. I
Price
Amount
this Est
Amount
to Date
1
8" PVC
LF
973
954
19
0
$10.80
$0.00
$10,303.20
2
6" PVC
LF
60
60
0
0
$8.90
$0.00
$534.00
3
8x8x6
EA
3
3
0
0
$137.00
$0.00
$411.00
4
8" 45
EA
2
3
-1
0
$97.00
$0.00
$291.00
5
8" 22 1/2
EA
3
3
0
0
$98.00
$0.00
$294.00
6
8" 11 1/4
EA
3
3
0
0
$99.00
$0.00
$297.00
7
6" GV
EA
3
3
0
0
$500.00
$0.00
$1,500.00
8
Hyd
EA
3
3
0
0
$1,365.00
$0.00
$4,095.00
9
R&S plug
EA
1
1
0
0
$50.00
$0.00
$50.00
10
R&S reducer
EA
1
1
0
0
$50.00
$0.00
$50.00
11
Water service
EA
16
16
0
0
$120.00
$0.00
$1,920.00
12
1" Cu
LF
621
676
-55
0
$6.10
$0.00
$4,123.60
13
Bact. test
EA
2
2
0
2
$35.00
$70.00
$70.00
14
Density
EA
25
121
13
3
$41.00
$123.00
$492.00
Total Bid B = $193.00 $24,430.804
Rid n
Item
No.
Item
Unit
Bid
Qtny
Qnty
to Date
Rem
Qnty
Qnty
this Est.
Price
Amount
this Est
Amount
to Date
1
12" RCP
LF
36
36
0
36
$18.50
$666.00
$666.00
2
12" poly
LF
12
12
0
12
$11.80
$141.60
$141.60
3
15" poly
LF
162
159
3
0
$13.10
$0.00
$2,082.90
4
15" bends
EA
6
1
5
1
$23.00
$23.00
$23.00
5
12" FES
EA
1
0
1
0
$260.00
$0.00
$0.00
6
15" FES
EA
1
1
0
0
$260.00
$0.00
$260.00
7
48" CB (0-5)
EA
11
1
0
0
$1,022.00
$0.00
$1,022.00•
8
27" CB (0-5)
EA
2
2
0
1
$675.00
$675.00
$1,350.00
9
4" perf pvc
LF
982
856
126
856
$3.80
$3,252.80
$3,252.80
10
4x4x4 tee
EA
10
7
3
7
$50.00
$350.00
$350.00
11
4" cleanout
EA
4
4
0
4
$50.00
$200.00
$200.00
12
Headwall
EA
1
1
0
1
$150.00
$150.00
$150.00
13
IRip rap
CY
1 51
5
0
5
$96.80
$484.00
$484.00
14
1 Density
EA
1 51
0
5
0
$41.00
$0.00
$0.00
Total Bid C = $5,942.40 $9,982.30
Rid n
Item
No.
Item
Unit
Bid
Qtny
Qnty ..
to Date
Rem
Qnty
Qnty
this Est
Price
Amount
this Est
Amount
to Date
1
Sub. Prep
SY
4259
4259
0
4259
$1.25
$5,323.75
$5,323.75
2
Class 5
CY
946
946
0
946
$12.50
$11,825.00
$11,825.00
3
Surm. C&G
LF
2132
2097
35
2097
$6.40
$13,420.80
$13,420.80
4.
4' x-gutter
SY
11.1
12.4
-1.3
12.41
$34.00
$421.60
$421.60
5
Type 31 base
SY-IN
6390
0
6390
0
$1.50
$0.00
$0.00
6
Type 41 wear
SY-IN
6390
0
6390
0
$1.50
$0.00
$0.00
7
Paved walk
LF
1005
0
1005
0
$10.00
$0.00
$0.00
8
Density
EA
25
0
25
0
$41.00
$0.00
$0.00
Total Bid D = $30,991.15 $30,991.15
Bid E
Item
No.
Item
Unit
Bid
Qtny
Qnty
to Date
Rem
Qnty
Qnty
this Est
Price
Amount
this Est
Amount
to Date
1
3rd addn walk
LF
43651
0
4365
0
$10.00
$0.00
$0.00
Total Bid E _ $0.00 $0.00
Extra Work:
Amount Amount
this Est. to Date
Crossing gas main 3 HR @ $590.00/HR $0.00 $1,770.00
Project Summary:
Total Extra Work = $0.00 $1,770.00
Amount
Amount
this Est.
to Date
Total Work= $38,315.85
$102,113.85
Less Retainage 5%=
($5,105.69)
Less Previous Payment No. 1=
($60,608.10)
Total Latour Payment No. 2= $36,400.06
r
rvS t,
Io05V ",FOACYft
O.CT-20-97 MON 17:02 MEYER—ROHLIN, INC.
612 682 9492
P. 01
4
MEYER-ROHLI t, INC.
ENGINEERS -LAND SURVEYORS 1111 Hwy. 25 N., Buffalo, Minn. 55313 Fax 612-682-9492
Phone 612-682-1781 1-800-563-1781
Mr. Don Jensen
Pilot Land Development Company
13736 NE Johnson Street
Ham Lake, MN 55304
RE: Parkside 3'a Addition
Street and Utilities Improvement Projec
Albertville, MN
Partial Payment No. 6
Mr. Jensen:
September 3, 1997
Note
post-lt° �a7671
Pht]RB
D Zv
Pa98s
.., s
The contractor for the above -referenced project has requested partial payment for work
completed to date. Attached you shall find the quantities for the work performed.
We, therefore, recommend Partial Payment No. 6 be made to Brown. & Cris, Inc., 19740
Kenrick Avenue, Lakeville, MN 55044, in the amount of $50,223.32.
If you have any questions or comments, please do not hesitate to contact me.
Sincerely,
MEYF,R-R%1LIN, INC.
Chris Cunnington
Project Engineer
cc: Brown & Cris
Idle 96105-A
Thore P. Meyer, Professional Engineer Robert Rohlin, Licensed Land Surveyor
OCT-20-97 MON 17:03 MEYER-ROHLIN, INC. 612 682 9492 P.02
Parkside 3rd Addition
Street and Utilities Improvement Project
Albertville, MN
Bid A
Payment No. 6
2-Sep-97
Item
No.
Item
Bid
Qtny
Qnty
to Date
Rem
Qntythis
Qnty
Est
Price
Amount
this Est
Amount
to Date
1
8" (0-8)
ELF
50
0
50
0
$18.25
$0.00
$0.00
2
8"(8-10)
910
1493
-583
0
$18.25
$0.00
$27,247.25
3
8"(10-12)
1
1187
382
805
0
$18.25
$0.00
$6,971.50
4
8" (12-14)
LF
748
574
174
0
$18.25
$0.00
$10,475.50
5
8" (14-16)
LF
1276
929
347
0
$18.25
$0.00
$16,954.25
6
8" (16-18)
LF
349
622
-273
0
$18.26
$0.00
$11,351.50
7
8" (18-20)
LF
221
506
-285
0
$18.25
$0.00
$9,234.50
8
8" (20-22)
LF
50
37
13
0
$49.60
$0.00
$1,835.20
9
8" (22-24)
LF
30
20
10
0
$49.60
$0.00
$992.00
10
8" (24-26)
LF
432
0
432.
0
$49,60
$0.00
$0.00
11
8"(26-28)
LF
124
0
124
0
$49.60
$0.00
$0.00
12
12"(16-18)
LF
10
0
10
0
$26.80
$0.00
$0.00
13
12"(18-20)
LF
188
255
-67
0
$26.80
$0.00
$6,834.00
14
12"(20-22)
LF
831
795
36
0
$41.75
$0.00
$33,191.25
15
12"(22-24)
LF
1 328
370
-42
0
$41.75
$0.00
$15,447.50
16
12"(24-26)
LF
536
481
55
0
$41.75
$0.00
$20,081.75
18
12"(26-28)
LF
41
0
41
0
$41.75
$0.00
$0.00
19
MH 48"
EA
23
23
0
0
$1,110.00
$0.00
$25,530.00
20
MH 48" ex
LF
188.2
204
-15.8
0
$61.00
$0.00
$12,444.00
21
MH dr
EA
2
2
0
0
$591.00
$0.00
$1,182.00
22
MH dr ex
LF
15.5
12.35
3.15
0
$117.00
$0.00
$1,444.95
23
8" clnout
EA
3
3
0
0
$93.00
$0.00
$279.00
24
10" clnout
EA
1
0
1
0
$111.00
$0.00
$0.00
25
12" clnout
EA
1
1
0
0
$135.00
$0.00
$135.00
26
conn
EA
101
101
0
0
$36.00
$0.00
$3,636.00
27
4" PVC
L-
4120
4323
-203
0
$7.05
$0.00
$30,477.15
28
Density
EA
193
26
167
0
$30.00
$0.00
$780.00
29
Rock
CY
40
33
7
0
$16,001
$0.00
$528.00
Total Bid A = $0.00 $237,052.30
Item
No.
Item
Unit
Bid
Qtny
Qnty
to Date
JRern
Qnty
Qnty
this Est
Price
Amount
this Est
Amount
to Date
1
6" PVC
LF
197
245
-48
0
$13.50
$0,00
$3,307,50
2
8" PVC
LF
5302
5200
102
0
$12.30
$0.00
$63,960.00
3
12" PVC
LF
2105
2038
67
0
$16.25
1 $0.00
$33,117.50
4
6" Valve
EA
13
15
-2
0
$381.00
$0.00
$5,715.00
Page 1
N5;!00
Ai&gEH
MEMORANDUM
❑ ST. PAUL, MN ❑ MINNEAPOLIS, MN ■ ST, CLOUD, MN ❑ CHIPPEWA FALLS, Wl O MADISON, WI O LAKE COUNTY, IN
TO: Linda Houghton
City Clerk
Albertville, Minnesota
FROM: Peter J. Carlson, P.E.
City Engineer
DATE: October 28, 1997
RE: Letter of Credit Reduction
Parkside 3rd Addition
Albertville, Minnesota
SEH No. A-ALBEV9801.00
I have reviewed the remaining work to be completed for this project. I recommend that the City
maintain no less than $70,000.00 in obligation thru a combination of the letter of credit and bond.
The City Attorney should recommend how the split should occur.
c: Mike Couri, City Attorney
GA0FF\PERSICARLS0NTARK3. WPD
An Affinnative Action,
Equal Opportunity Emp/nver
PILOT
LAND DEVELOPMENT COMPANY
October 20. 1997
Mr. Pete Carlson - SEH
c/o Mr. Gary Hale
Citv Administrator
5975 Main Avenue NE.
Albertville, MN 55301
RE: Letter of Credit and Bond Reductions for Parkside 3rd Addition, grading release
Dear Mr. Carlson:
During 1997. substantial work has progressed on the project. Kenco (now Pilot Land) completed and paid
both our grading contractor and utility contractor for their entire work contracts. In addition, the entire
project has had the first lift of asphalt paved, street signs installed, and a second lift on the early completion
phase 1 area. Phase 1 represents 35% of the total paving for final lift work. The balance will occur in
1998.
At this time, we request the existing surety be reduced based on work completed. Since all work was
subject to inspection by the City, we believe a note accepting the utility piping is reasonable. Our lien
waivers are included.
$33,191 of remaining work remains for Brown & Cris to order in Bid item section D, streets. Of this
amount, we agreed to hold 50% of the cost of the December 1996 paving line item, adding back $ 6,301.
All items have been completed on the 60th Street project. 'These remaining items create a letter of credit
balance of $39,492.
The City approved of a 75% letter of credit obligation at 100% and a 25% bond at 150% . A reduction to
the existing $177,600 LOC. on file to $39,492 should be able to occur and a reductionof the existing
$88,800 bond to $25,000 should be able to occur. The bond as written covers items such as driveways and
sod and trees within the subdivision. A requirement to provide surety for these items is not in the
development agreement. $25,000 would more than cover the remaining 50 to be completed lots.
Please notify our bank accordingly upon your concurrence with my math above. If you have any questions,
please contact me.
Since4ely,
Donald Jensen
Land Development Director
attachment: pay requests, lien waivers
psidsrtydoc
13736 Johnson Street NE • Ham Lake, MN 55304 • 757-9816 • Fax: 757-4094
0,CT-20-97 MON 17:03 MEYER-ROHLIN- INC. 612 682 9492 P.03
5
8" Valve
EA
15
14
1
0
$509.00
$0.00
$7,126.00
6
12" Valve
EA
6
6
0
0
$861.00
$0.00
$5,166.00
7
16x12 tap
EA
1
1
0
0
$1,828.00
$0.00
$1,828.00
8
9
Hyd
8x6
EA
EA
17
3
19
2
-2
1
0
0
$1,225.00
$56.00
$0.00
$0.00
$23,275.00
$112.00
10
11
8x8x6
8x8x8
EA
EA
10
3
12
3
-2
0
0
0
$107.00
$115.00
$0.00
$0.00
$1,284.00
$345.00
12
8" 11 1/4
EA
10
13
-3
0
$79.00
$0,00
$1,027.00
13
8" 22 1/2
EA
11
11
0
0
$78.00
$0.00
$858.00
14
8" plug
EA
2
0
2
0
$27.00
$0.00
$0.00
15
12x6
EA
1
1
0
0
$89.00
$0.00
$89.00
16
17
12x8
12x12x6
EA
EA
1
3
1
4
0
-1
0
0
$86.00
$170.00
$0.00
$0.00
$86.00
$680.00
18
12x12x8
EA
1
1
0
0
$177.00
$0.00
$177.00
19
12x12x12
EA
1
1
0
0
$215.00
$0.00
$215.00
20
12x12x8x8
EA
2
2
0
0
$235.00
$0.00
$470.00
21
12" 11 114
EA
4
3
1
0
$136.00
$0.00
$408.00
22
12" 22 1/2
EA
1
1
0
0
$135.00
$0.00
$135.00
23
conn
EA
101
101
0
0
$178.00
$0.00
S17,978.00
24
1" Cu
LF
4120
4197
-77
0
$7.05
$0.00
$29,588.85
25
Bact. test
EA
8
5
31
0
$23.75
$0.00
$118.75
26
Rock
CY
30
33
-3
0
$16.00
$0.00
$528.00
27
Density
EA
152
26
126
0
$30.00
$0.00
$780.00
28
Raise Vbox
EA
19
11
8
0
$146.50
$0.00
$1,611.50
29
3" insul.
SF
50
0
50
0
$5.75
$0.00
$0.00
30
Jacking
LF
50
601
0
-0
$146,50
$0.00
$7,325.00
Total Bid B = $0.00 $207,311.10
Bid C
Item
Bid
Qnty
Rem
Qnty.
Amount
Amount
No.
Item
Unit
jQtny
to Date
Qnty
this Est.
Price
this Est
to Date
1
12" RCP
LF
138
193
-55
0
$21.65
$0.00
$4,178.45
2
15" RCP
18" RCP
_LF
777
794
-17
0
$22.00
$0.00
$17,468.00
3
LF
988
1031
-43
0
$23.75
$0.00
$24,486,25
4
21" RCP
LF
1027
1021
6
0
$26.75
$0.00
$27,311.75
5
24" RCP
LF
175
172
3
0
$28.00
$0.00
$4,816.00
6
24" ARCH
LF
16
18
-2
0
$41.75
$0.00
$751.50
7
36" ARCH
LF
196
188
8
0
$70.75
$0.00
$13,3 11.00
8
CB 27"
EA
13
8
5
0
$767.00
$0.04
$6,136.00
9
CB 27" Ex
LF
0.6
0.5
0.1
0
$40.00
$0.00
$20M
10
CB 48"
EA
21
20
1
0
$958.00
$0.00
$19,160.00
11
CE3 48" Ex
LF
2.2
19.71
-17,5
0
$61.00
$0.00
51.202.31
12
CB 60
EA
3
3
0
0
$1,450.00
$0.00
$4,350,00
13
Cl3 60" Ex
LF
0.3
0.25
0.05
_
0
7$103.88
S0.00
$25,97
14
18" apron
EA
2
4
-2
0
$539.00
$0.00
52,156.00
15
21" Apron
EA
1
1
0
0
$621.00
$0.00
$621.00
16
24" Apron
EA
1
1
0
0
$698.00
$0.00
$698.00
17
36" Apron
EA
1
1
0
0
$1,168.00
$0.00
$1,168.00
4q 0
Page 2
XOCT-20-97 MON 17:04 MEYER-ROHLIN, INC. 612 682 9492 P.04
1/
18
1 Rip Rap
CY
.27
17.91
9.1
0
$46.00
$0.00
$823,40
19
Gn[r filter
CY
11
0
11
0
$10.00
$0.00
$0.00
20
4" Prf pipe
LF
3720
3720
i3
0
$3.05
$0.00
$11,346.00
21
8" Prf pipe
LF
1074
1074
0
0
$3.95
$0.00
$4,242,30
22
4x4x4
FA
66
66
0
$45.00
$0.00
$2,970.00
23
8x8x4
F-A
20
20
0
0
$65.00
$0.00
$1,300.00
24
4x4x4x4
EA
1
1
0
0
$55.00
$0.00
$55.00
25
4" Tile
LF
18
18
0
0
$50.00
$0.00
$900.00
26
8" Tile
LF
3
3
0
0
$65.00
$0.00
$195.00
27
Rock
CY
30
11
19
0
$16.00
$0.00
$176,00
28
Density
1;A
65
1
64
0
$30.00
$0.00
$30.00
L
Total Bid C = $0.00 $149,887.93
Bid D ()Nt,U
item
Bid
Qnty
Rem
Only
Amount
Amount
No.
Item
Unit
Qtny
to Date
Qnty
this Est.
Price
this Est
to Date
1
Sub Prep
SY
23455
23455
0
2470
$0.98
$2,420.60
$22,985.90
2.
Geo Tex
SY
23455
0
23455
0
$0.85
$0.00
$0.00
3
C15
CY
8058
13788
-5730.
1264
$11,74
$14,839.36
$161,871.12
4
Curb Surm
LF
12650
11531
1119
1686
$6.40
$10,790.40
$73,798.40
5
Curb B618
LF
1450
1483
-33
40
$6.70
$268.00
$9,936.10
6
4" cn pvmt
CY
2
0
2
0
$200.00
$0.00
$0.00
7
31 base
SPIN
53420
10822
20493
$1.10
$22,542.30
$58,762.00
8
41 wear
SYIN
39799
39799
0
39799
0
$1.21
$0.00
$0.00
9
Barricade
LF
32
0
32
- 0
$40.00
$0.00
$0.00
10
Adj MH
EA
24
10
14
0
$240.00
$0.00
$2,400.00
11
Adj GV
EA
19
8
11
8
$125.00
$1,000.00
$1,000.00
12
Density
EA
701
501
20
7
$31.00
$217.00
$1,550.00
13
Seed/Mich
AC
13
0
13
0
$600.00
$0.00
$0,00
Total Bid D = $52.077.66 $332,303.52
4
s
Page 3
0CT-20-97 MON 17:05 MEYER—ROHLIN, INC.
612 682 9492
P . 05
Ext
Completion Bonus
Inv # 7722 Adjust Hydrants Hydrants
Replace Pacer Hy Inv # 7731 drams with Clow
Inv # 7732
Inv # 96042-B Silt Fence around
fo f CUrbf Crew Manholes
Inv # 96042-C Extra Mob
Inv # 96042-D Extra Mob. for Curb Crew
Inv # 96042-E 8" D1P Sleeve
Project Summary=
Amount
Amount
this Est
to Date
$5,000.00
$0.00
g,456.65
$0 00
$2,025,95
0.00
$31271.68
$0.00
$209.00
$209.00
$250.00
$250.00
$250.00
$250.00
$80.00
$80.00
Total Extra Work=
$789 00 $111543,28
Total Work
Less Retalnage 5010-
LeSS Payment No 1=
Less Payment No 2--
Less Payment No 3=
Less payment No 4 =
Lees Payment No 5 =
Amount Amount
this Est
to Date
$52,866.66 $938,098.13
($46,904.91)
($410,641.78)
($308,834.47)
($44,802.60)
($43,177.86)
33 313.19
$50,223.32
Total payment No, 6
page 4
_° 9 -7
047 _ c:N�as
can:Z!
�__ --- t____ ___• -` 1--•- C= _i_'^= � � -._.= .._ _- _ - .-.. �. _=--�-_ __-�. -- /� r :... = G..__•.�... �L'� �L. L •tom .._
_
77
— =Gi = i ;-ti;�1 4w?=ti =r 0= ti�—� ---i �'c -- - - - - --
C-=C=- C,��Y C'y
✓I a�s c::.c Vic;,-� =- �`-=" -•-- == - -=--=- •--•-.``===
'l.l �L—~J'�r c l /.7
L-----�•SG _._ __-. _� ram_ - .- � _ -.. .. ... ___ _ �._ -. ._.--.-= �.- _-_-..�- (�� -. �= G.._..•r.. G�'r r.... .\ '� __
.-.
BROWN & CR?S, P-MICo.
MICHAEL reTM, CFI
BROWN & CA(5�, *C. i
I g740 KFNR ICK AVENUE
LAKEVILLE, MINNESOTA-55044
612/469-2121
Form �4C. 1� C -`vi (1u_1)
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The undersigned hereby acicnowiedg_s receipt of the sum of S
uiitwrl; a.+a CY �tinnwaooga �t6 ;.�
utnnwsot• Urwlo.m Gmrryanand �tan«a (t7�51
C1iECK ONLY ONE
t) as partial payment for labor, skill and material furnished
�} as payment for ail labor, skill and material furnished or to be furnished (except the sum of
retainage or holdback)
y) as full and final payment for all labor, skill and material furnished or to be furnished
.o the following described real property: (legal desrion, street address or project name)
!1
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and for value received hereby waives all rights acquired by the undersigned to file or record mechanic's liens
Iz i nst said real property for labor, skill or material furnished to said real property (only for the amount paid if
Sox 1 is checked, and except for reta.inage shown if Box 2 is checked). The undersigned af-f;:rms that all material
'u-^ished by the undersigned :has been paid fer, and all subcontractors employed by the undersigned have been
:d iz full, EXCZF'i':
:NOTE: If this instrument is executed by a cor-
poration, it must be signed by an of-'
facer, and if executed by a partnership,
it must be signed by a partner.
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CALC.U1.,Al'1ViV Vr' LV.V.PtX Up' CRr:Ul'X1 bUiVD REQUIREMENTS
Estimated Construction Cost
Streets, utilities, etc.
Latour bid $983,180
Estimated Engineering (10%) $98,318
$1,081,498
Sanitary SewerTrunk Line
Per construction cost estimate $190,000
Estimated Engineering (18%) $34,200
$224,200
Total Estimated -Construction Cost $1,305,698
Surety needs
Bank Letter of Credit
at 75% of total surety needs $979,274
Bond
at 150% of remaining surety needs $489,637
($326,424 x 15)
�uvid-5 fD he vrh sue.
t,O G -fty Pao;s to 714" releAf -
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a u u A
February 25, 1997
5975 Main Avenue N.E.
P.O. Box 9
Albertville, MN 55301
(612) 497-3384
Fax: (612) 497-k10
Larry E. Pietrzak
Senior Vice President
Northeast State Bank
3989 Central Avenue NE
Columbia Heights, MN 55421
RE: Letter of Credit #25-96
Kenco Construction
Dear Mr. Pietrzak:
Please accept this letter as official notification that the
Letter of Credit #25-96 in favor of the City of Albertville for the
account of Parkside 3rd Addition and 60th Street Trunk Sewer
Project may to reduced. The revised Letter of Credit should be in
the amount of $177,600.
The revised Letter of Credit should bear the same terms and
conditions as stated in the original document in regards to
expiration date, automatic renewal and method of withdrawal.
Should you have any questions, please feel free to contact me.
M
ghton
City Clerk -Treasurer
cc: Don Jensen
cnsqu H J;NCCRPCRA
5050 S. BRAINARC, LA GRAND LINCIS 60525 MEV1 5243282
s p
IN C.IRANCE COMPANY
MCNPCE!.LC, NEW vCnK
(A 91ock Campeny)
SUBDIVISION BOND
Bond No.: 95176 1
Principal Amount: $489,637.00
KNOW ALL MEN BY THESE PRESENTS, t1lat we KENCO CONSTRUCTION, INC.
13736 Johnson Street N.E.
Ham Lake, MN 55304 as Principal,
Lake Louise Marie Road
INSURANCE CO. Rock Hill, NY 12775-8000 a New York
and FRONTIER
corporation,
as Surety, are held and firmly bound unto CITY OF ALBERTVILLE
P . 0. Box 9, Albertville, MN 55301 in the penal sum of
Four Hundred Eighty Nine Thousand Six Hundred Thirty Seven & 00/100 -- (Dollars)
($ 489,637.00---------) , lawful money of the United States of America,
for the payment of which well and truly to be made, we bind
ourselves, our heirs, executors, administrators, successors and
assigns, jointly and severally, firmly by these presents.
WHEREAS, KENCO CONSTRUCTION, INC.
has agreed to construct in PARKSIDE THIRD ADDITION _ Subdivision,
and the 60th Street Utility Project, all located
in ALBERTVILLE, MINNESOTA the following
improvements:
Storm & Sanitary Sewer, Water Lines, Streets, Draintile, Blvd, Sod, Yard TrPPs,
Driveway Aprons and Erosion Control as Referenced by Developer Agreement—
Sord No. 951716
NOW, THEREFORE, THE CONDITION OF THIS -OBLIGATION IS SUCH, that
if the said Principal shall construct, or have constructed, the
improvements herein described and shall save the Obligee harmless
from any loss, cost or damage by reason of its failure to complete
said work, then this obligation shall be null and void, otherwise
to remain in full force and effect, and the Surety, upon receipt
of a resolution of the City Council indicating that the
improvements have not been installed or completed, will complete
the improvements or pay to the municipality such amount up to the
Principal amount of this bond which will allow the municipality
to complete the improvements.
Signed, sealed and dated, this 9th day of August , 1996
By
Dawn L . Morgan , torney- n-Fact
MAW
Development Program approvea oy
City Council November 3, 1997
TIF Plan, TIF District No. 9 approved by
City Council November 3, 1997
MODIFIED DEVELOPMENT PROGRAM
DEVELOPMENT DISTRICT NO. 1
and
TAX INCREMENT FINANCING PLAN
TAX INCREMENT FINANCING DISTRICT NO. 9
CITY OF ALBERTVILLE, MINNESOTA
November 3, 1997
This Instrument Drafted by:
KENNEDY & GRAVEN, CHARTERED (DJG)
470 Pillsbury Center
200 South Sixth Street
Minneapolis, Minnesota 55402
Telephone: (612) 337-9300
DJG131111
AL141-26
SECTION I. MODIFIED DEVELOPMENT PROGRAM FOR DEVELOPMENT
DISTRICT NO.1.......................................
Subsection 1.1.
Subsection 1.2.
Subsection 1.3.
Subsection 1.4.
Subsection 1.5.
Subsection 1.6.
Subsection 1.7.
Subsection 1.8.
Subsection 1.9.
Subsection 1.10.
Subsection 1.11.
Subsection 1.12.
Subsection 1.13.
Subsection 1.14.
SECTION II.
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
M.
N.
O.
P.
Q.
R.
S.
T.
U.
V.
W.
Definitions ......................................
Statement and Finding of Public Purpose ...................
Statutory Authority ..................................
Statement of Objectives ......... ...................... .
Estimated Public Costs and Supportive Data .................
Environmental Controls ....... ...................... .
Proposed Reuse of Property ............................
Public Improvements and Facilities to be Constructed
Within Development District No. 1 .......................
Administration and Maintenance of the
Development District ................................
Rehabilitation ......................................
Relocation ........................................
Open Space to be Created .............................
Boundaries of the Development District ....................
Parcels To Be Acquired or May be Acquired In
Whole or In Part Within the Development District ............
1
2
2
2
3
4
4
4
4
4
5
5
5
5
TAX INCREMENT FINANCING PLAN FOR TAX
INCREMENT FINANCING DISTRICT NO. 9............... 6
Statutory Authority .......................................
6
Statement of Objectives ....................................
6
Statement of Public Purpose ..................................
6
Development District Program ................................
6
Description of TIF District ...................................
6
Development Contracts .....................................
7
Classification of TIF District .................................
7
Modification of TIF Plan ....................................
7
Use of Tax Increment ......................................
7
Excess Tax Increment ......................................
8
Limitation on Collection of Increment ...........................
8
Limitation on Administrative Expenses .......... ......... ....
9
Limitation on Boundary Changes ..............................
9
Relocation ..............................................
9
Parcels to be Acquired Within the TIF District .....................
9
TIF Account ............................................
9
Estimate of Project Costs ...................................
10
Estimate of Bonded Indebtedness .............................
10
Original Tax Capacity and Original Tax Capacity Rate ..............
10
Estimate of Captured Tax Capacity and Tax Increment ..............
11
Duration of the TIF District .................................
11
Estimate of Impact on Other Taxing Jurisdictions ..................
11
Annual Financial Report ...................................
11
DJG131111
AL141-26 1
X. Notification of Prior Planned Improvements ...................... 11
Y. Assessment Agreements ............ „ ....................... 11
Z. Local Government Aid/Homestead and Agricultural Credit Aid
(LGA/HACA).......................................... 12
DJG131111 it
AL141-26
SECTION I. MODIFIED DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT
NO. 1.
Subsection 1.1. Definitions. For the purposes of the Development District Program, the
following terms shall have the meanings specified below, unless the context otherwise requires:
"City" means the City of Albertville, a municipal corporation under, the laws of the State
of Minnesota.
"Comprehensive Plan" means the City's Comprehensive Plan, including the objectives,
policies, standards and programs to guide public and private land use, development,
redevelopment and preservation for all lands and water within the City.
"City Council" or "Council" means the Albertville City Council;
"City Development District Act" or "Act" means Minnesota Statutes, Sections 469.124
through 469.134, as amended.
"County" means Wright County, Minnesota.
"Development District" means Development District No. 1 which was initially approved
by the Council in April, 1981 pursuant to and in accordance with the City Development District
Act, and as it has been or may be modified.
"Development District Program" or "Program" means the program for development of the
District adopted by the City pursuant to the Development District Act.
"Project Area" or "Project" means the property within Development District No. 1, as
described in the Development Program.
"State" means the State of Minnesota.
"Tax Increment Financing Act" or "TIF Act" means Minnesota Statutes, Sections 469.174
through 469.179, inclusive, as amended.
"Tax Increment Bonds" means any general obligation or revenue tax increment bonds or
notes issued by the City to finance the public costs associated with Development District No. 1
as stated in the Program and in the Tax Increment Financing Plan for the Tax Increment
Financing Districts within Development District No. 1, or any obligations issued to refund the
Tax Increment Bonds.
"Tax Increment Financing District" or "TIF District" means any Tax Increment Financing
District created and established pursuant to the TIF Act within Development District No. 1.
"Tax Increment Financing Plan" or "Plan" means the TIF Plan adopted by the Council for
any TIF District within Development District No. 1.
DJG131111 1
AL141-26
Subsection 1.2. Statement and Finding of Public Purpose. The Council of the City
determines that there is a need for development and redevelopment within the corporate limits
of the City and within the Development District to provide employment and housing
opportunities, to improve the tax base, and to improve the general economy of the State. It is
found that the area within the District is potentially more useful and valuable than is being
realized under existing development, is less productive than is possible under this Program and,
therefore, is not contributing to the tax base to its full potential.
Therefore, the City has determined to exercise its authority to develop a program for
improving the Development District of the City to provide an impetus for private development,
to maintain and increase employment, to utilize existing potential and to provide other facilities
as are outlined in the Development Program adopted by the City.
The Council finds that the welfare of the City as well as the State of Minnesota requires
active promotion, attraction, encouragement and development of economically sound industry,
housing, and commerce to carry out its stated public purpose objectives.
Subsection 1.3. Statutory Authority. The Council reaffirms its determination that it is
desirable and in the public interest to establish, develop and administer a Development Program
for the Development District in the City, pursuant to the provisions of the; Act.
Funding of the necessary activities and improvements in the Development District may
be accomplished in whole or in part through tax increment financing in accordance with the TIF
Act.
The City has designated a specific area within the corporate limits of the City as
Development District No. 1 as authorized by Section 469.126 of the Act, as outlined in this
document. Within the Development District, the City has previously created TIF District Nos.
1, 2, 3, 4, 5, 6, 7, and 8.
The original Development Program for Development District No. 1 was approved in April,
1981 and has been modified subsequently. On July 17, 1989, the Development Program was
modified to expand the area of the Development District. On July 15, 11996 and May 20, 1997,
the Development Program was again modified to expand the area of the: Development District.
The City has now determined that, in order to address changing development needs
throughout the City, it is in the public interest to provide for additional expenditures and
development within Development District No. 1. This modified Development Program is
intended to restate and expand on the original program and all prior amendments hereto, which
are incorporated herein by reference. Nothing in this modification is intended to supersede or
alter the activities described in the original Development Program.
Subsection 1.4. Statement of Objectives. The Council determines that the Development
District will provide the City with the ability to achieve certain public purpose goals not
otherwise obtainable in the foreseeable future without City intervention in the normal
development process. The public purpose goals include: restore and improve the tax base and
tax revenue generating capacity of the Development District; increase employment and housing
DJG131111 2
AL141-26
opportunities; realize comprehensive planning goals; remove blighted conditions; revitalize the
property within the Development District to create an attractive, comfortable, convenient, and
efficient area for industrial, commercial and related use.
The City and Council seek to achieve the following Development District program
objectives:
1. Promote and secure the prompt development of certain property in the
Development District, which property is not now in productive use or in ;its highest and best use,
in a manner consistent with the City's Comprehensive Plan and with the minimum adverse impact
on the environment, and thereby promote and secure the development of other land in the City.
2. Promote and secure additional employment and housing opportunities within the
Development District and the City for residents of the City and the surrounding area, thereby
improving living standards, reducing unemployment and the loss of skilled and unskilled labor
and other human resources in the City.
3. Secure the increase of commercial/industrial property subject to taxation by the
City, Independent School District No. 885, Wright County, and other taxing jurisdictions in order
to better enable such entities to pay for governmental services and programs required to be
provided by them.
4. Provide for the financing and construction of public improvements in the
Development District necessary for the orderly and beneficial development of the Development
District and adjacent areas of the City.
5. Promote the concentration of commercial, office, and other appropriate
development in the Development District so as to maintain the area in a manner compatible with
its accessibility and prominence in the City.
6. Encourage local business expansion, improvement, and development, whenever
possible.
7. Create a desirable and unique character within the Development District thorough
quality land use alternatives and design quality in new and remodeled buildings.
8. Encourage and provide maximum opportunity for private redevelopment of existing
areas and structures that are compatible with the Development Program.
9. Encourage redevelopment of substandard buildings, to improve employment
opportunities in the Development District and the City, where compatible with other planning and
development goals.
Subsection 1.5. Estimated Public Costs and Supportive Data. The public costs and
development plans for the Development District have been described in detail in each TIF Plan,
which are incorporated herein by reference.
DJG131111
AL141-26
The City now anticipates additional public costs to be financed in part with tax increments
from TIF District No. 9. Estimated costs and related data for such efforts are set forth in the TIF
Plan for TIF District No. 9. The TIF Plan for TIF District No. 9 is attached to this modified
Development Program.
Subsection 1.6. Environmental Controls. The proposed development activities in the
Development District do not present significant environmental concerns. All municipal actions,
public improvements and private development shall be carried out in a rnanner consistent with
existing environmental standards.
Subsection 1.7. Proposed Reuse of Property. The proposals for reuse of property within
the Development District are described in the documents referenced in Section 1.5 herein. The
City may acquire additional parcels for development, as identified in Subsection 1.14 herein.
Unless otherwise specified, the Development Program does not contemplate the acquisition
of private property until such time as a private developer presents an economically feasible
program for the reuse of that property. Proposals, in order to be considered, must be within the
framework of the above cited goals and objectives, and must clearly demonstrate feasibility as
a public program. Prior to formal consideration of the acquisition of any property, the City
Council will require a binding contract, performance bond and/or other evidence or guarantees
that a supporting tax increment or other funds will be available to repay the public cost associated
with the proposed acquisition. It is the intent of the City to negotiate the acquisition of property
whenever necessary. Appropriate restrictions regarding the reuse and redevelopment of property
shall be incorporated into any land sale contract to which the City is a part.
Subsection 1.8. Public Improvements and Facilities to be Constructed Within
Development District No. 1. The public improvements and facilities to be constructed within
Development District No. 1 include streets, water, sanitary sewer and storm sewer, utilities, soils
correction, parking and landscaping. All public improvements are more particularly described
in the documents referenced in Subsection 1.5 herein.
Subsection 1.9. Administration and Maintenance of the Development District.
Maintenance and operation of the public improvements will be the! responsibility of the
Administrator of the City who shall serve as Administrator of the Development District. The
Administrator will administer the Development District pursuant to the :provisions of Section
469.131 of the Act; provided, however, that such powers may only be exercised at the direction
of the Council. No action taken by the Administrator pursuant to the above -mentioned powers
shall be effective without authorization by the Council.
Subsection 1.10. Rehabilitation. Owners of properties within the Development District
will be encouraged to rehabilitate their property to conform with the applicable state and local
codes and ordinances, as well as any design standards. Owners of the properties who purchase
property within the Development District from the City may be required to rehabilitate their
properties as a condition of sale of land. The City will provide such rehabilitation assistance as
may be available from federal, state or local sources.
DJG131111 4
AL141-26
Subsection 1.11. Relocation. The City does not anticipate the need to relocate any
residents or businesses, but if such need arises, provisions for relocation will be made in
accordance with Minnesota Statutes, Section 117.50 through 117.56 and any rules adopted by the
City Council.
Subsection 1.12. Open Space to be Created. The City, in carrying out the objectives of
the Development Program, proposes to encourage the beautification of open spaces through the
development of criteria which shall be incorporated into any land sale or development agreements
entered into by the City of Albertville.
Subsection 1.13. Boundaries of the Development District. Boundaries of Development
District No. 1 are unchanged by this modification. A map of the Development District is
attached at Exhibit A.
Subsection 1.14. Parcels To Be Acquired or May be Acquired In Whole or In Part Within
the Development District. The City may acquire any parcels in any TIF District or in the
Development District as a whole if necessary to carry out the goals and objectives of the
Development Program.
DJG131111 5
AL141-26
III. TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING
DISTRICT NO. 9
A. Statutory Authority
Pursuant to the TIF Act, the Authority seeks to create TIF District No. 9 and adopt a TIF
Plan for that TIF District.
B. Statement of Objectives
The objectives for the Development District set forth in Subsection 1.4 of the
Development Program are incorporated herein by reference.
C. Statement of Public Purpose
In adopting the TIF Plan for TIF District No. 9, the City Council will make the following
findings:
1. Anticipated development would not reasonably be expected to occur solely
through private investment within the reasonably foreseeable future and the increased
market value of the site that could reasonably be expected to occur without the use of tax
increment financing would be less than the increase in the market value estimated to result
from the proposed development after subtracting the present value of the projected tax
increments for the maximum duration of the district permitted by the TIF Plan;
2. The TIF Plan will afford maximum opportunity, consistent with the sound
needs of the Authority as a whole, for development of the District by private enterprise;
and
3. The TIF Plan conforms to general plans for development of the City as a
whole.
Finding No. 1 is demonstrated by the economic analysis on file at City Hall and the
Council's knowledge of the site and development within the City generally. Without tax
increment financing assistance, public improvements necessary to serve the site would not be
feasible, and no other development would be expected to occur. Thus, ,no market value increase
would be reasonably expected absent tax increment financing. k
D. Development District Program
Actions taken with regards to TIF District No. 9 will be fully consistent with the Plan for
Development District No. 1, as modified.
E. Description of TIF District
TIF District No. 9 consists of the property described in Exhibit E. A map of the
approximate boundaries of TIF District No. 9 is included in Exhibit A.
DJG131111
AL141-26
F. Development Contracts
The Authority has not yet entered any development contracts regarding property within
the TIF District. The Authority expects to enter a development contract with Don's Bus Garage
providing for the development described in more detail in Section Q of this TIF Plan.
G. Classification of TIF District
The City finds that TIF District No. 9 is an economic development district pursuant to
Section 469.174, subdivision 12 of the TIF Act because the proposed tax increment assistance
will discourage commerce, industry, and manufacturing from moving their operations from the
City, will result in increased employment within the State, and will result in the preservation and
enhancement of the tax base of the State. Further, revenue derived from tax increment from the
TIF District will not be used for to provide assistance in any form to developments consisting of
buildings or ancillary facilities if more than 15 percent of the buildings and facilities (determined
on a square footage basis) are used for a purpose other than:
1. the manufacturing, storage and distribution of tangible personal property,
including processing resulting in the change in condition of the property;
2. warehousing, storage and distribution of tangible personal property,
excluding retail sales;
3. research and development related to the activities listed in clause 1 or 2;
4. telemarketing, if that activity is the exclusive use of the property;
5. tourism facilities (if the conditions specified in Section 469.174, subd. 22
are met); and
6. space necessary for and related to the activities listed in clauses 1 to 5.
H. Modification of TIF Plan
The TIF Plan for TIT District No. 9 may be modified by the City, provided that any
reduction or enlargement of geographic area of TIF District No. 9, increase in amount of bonded
indebtedness to be incurred, including a determination to capitalize interest on the debt if that
determination was not a part of the original plan, or to increase or decrease the amount of interest
on the debt to be capitalized, increase in the portion of the captured assessed value to be retained
by the City, increase in total estimated tax increment expenditures, or designation of additional
property to be acquired by the City, shall be approved upon the notice and after the discussion,
public hearing and findings required for approval of the original plan.
I. Use of Tax Increment
1. Pursuant to Section 469.176, Subd. 4 of the TIF Act, all revenues derived from
the tax increment from TIF District No. 9 shall be used in accordance with the TIF Plan. The
DJG131111 7
AL141-26
revenues shall be used to finance or otherwise pay the capital and administrative costs of
development activities within the Development District as identified in the TIF Plan.
2. Pursuant to Section 469.1763, Subd. 2 of the TIF Act, at least 80 percent of the
revenue derived from tax increments paid by properties in TIF District No. 9 will be expended
on activities ("Activities") in the TIF District or to pay bonds, to the extent that the proceeds of
the bonds were used to finance Activities in the TIF District or to pay, or secure payment of, debt
service on credit enhanced bonds (as defined in the TIF Act). No more than 20 percent of the
revenue derived from tax increments paid by properties in TIF District No. 9 will be expended,
through a development fund or otherwise, on Activities outside of the TIF District but within
Development District No. 1 except to pay, or secure payment of, debt service on credit enhanced
bonds.
3. Revenues derived from tax increment will be expended in accordance with the
five-year rule as set forth in Section 469.1763 of the Tax Increment Act.
J. Excess Tax Increment
Pursuant to Sections 469.176, Subd. 2 of the TIF Act, in any year in which the increment
exceeds the amount necessary to pay the costs authorized by the TIF Plan, the City will use the
excess amount to do any of the following, in the order determined by the City:
1. Prepay the outstanding bonds;
2. Discharge the pledge of tax increment therefor;
3. Pay into an escrow account dedicated to the payment of bonds;
4. Retained by the City for future development purposes; or
5. Return the excess amount to the Wright County auditor, who shall distribute the
excess amount to the City, the County and Independent School District No. 885
in direct proportion to their respective tax capacity rates.
In addition, and subject to the limitations set forth in Subsection I herein, the City may
choose to modify the TIF Plan in order to provide for other economic development activities
within the TIF District.
K. Limitation on Collection of Increment
1. No increment shall be paid to the City from TIF District No. 9 after three years
from the date of certification of the original tax capacity of the taxable real property in the TIF
District by the county auditor unless within the three year period (a) bonds have been issued in
aid of Development District No. 1 pursuant to Section 469.178 of the TIF Act or any other law
except revenue bonds issued pursuant to Minnesota Statutes, Sections 469.152 to 469.165, or (b)
the City has acquired property within TIF District No. 9 or (c) the City has constructed or caused
to be constructed public improvements within TIF District No. 9.
2. If, after four years from the date of certification of the original tax capacity of TIF
District No. 9, no demolition, rehabilitation, or renovation of property or other site preparation,
including qualified improvement of a street or right-of-way adjacent to a parcel but not
DJG131111 AL141-26 8
installation of underground utility service, including sewer or water systems, have been
commenced on a parcel located within TIF District No. 9 by the City, or by the owner of the
parcel in accordance with the TIF Plan, no additional increment may be taken from that parcel,
and the original tax capacity of that parcel shall be excluded from the original tax capacity of the
TIF District. If these activities subsequently commences, the City will so certify to the county
auditor, and the tax capacity of the property as most recently certified by the commissioner of
revenue will be added to the TIF District's original tax capacity.
3. No tax increment will in any event be paid to the City from TIF District No. 9
after 9 years from the date of receipt of the first increment, or 11 years from the date of approval
of this TIF Plan, whichever occurs first.
L. Limitation on Administrative Expenses
Pursuant to Section 469.176, Subd. 3 of the TIF Act, administrative expenses are limited
to 10 percent of the total tax increment expenditures for Development District No. 1. Each time
the City increases the budget of TIF District No. 9, the amount of tax increment money allocated
to administrative costs may be increased as long as the total of administrative expenditures does
not exceed 10 percent of the total budget of the TIF District.
M. Limitation on Boundary Changes
The geographic area of TIF District No. 9 may be reduced, but it may not be enlarged
after five years following the date of certification of the original tax capacity by the Wright
County auditor. Thus, the TIF District may not be enlarged after approximately November 3,
2002.
N. Relocation
While no relocation is currently anticipated, the City accepts as binding its obligations
under state law for relocation and will administer relocation services for families, individuals and
businesses displaced by public action.
O. Parcels to be Acquired Within the TIF District
The City may acquire any property within the TIF District in order to cam out the
objectives of this TIF Plan.
P. TIF Account
The tax increment received with respect to TIF District No. 9 shall be segregated by the
City in a special account on its official books and records or held by a trustee for the benefit of
holders of bonds issued to finance development activities.
DJG131111 9
AL141-26
Q. Estimate of Project Costs
The City intends to facilitate development of a bus warehousing facility at a site that lacks
adequate public services. The total estimated costs to be financed in part with tax increment,
exclusive of interest, are as follows:
Land acquisition
Site improvements (grading, excavation, landscaping)
Soil corrections
Sanitary sewer, water and storm sewer utilities
Footings (necessitated by soil problems)
Parking
Street and curb improvements
TOTAL
$54,900
The above are estimates, which may shift among categories, provided that the total costs
will not exceed the total listed. Costs within each category are deemed to include capitalized
interest which will vary depending on when or if bonds are issued, but in any event will not exceed
three years as required by Minn. Stat. Ch. 475.
In addition to the costs listed above, the City may retain ten percent of the total tax
increment collected each year for administrative expenses, subject to the limitation that no more
than 10 percent of total tax increment expenditures may be expended for administrative costs, as
described in Subsection L hereof.
R. Estimate of Bonded Indebtedness
The City may finance the project costs identified in this TIP Plan through issuance of
revenue notes, pay as you go obligations in any form, or general obligation bonds in a principal
amount not to exceed approximately $54,900.
S. Original Tax Capacity and Original Tax Capacity Rate
As of the time of the request for certification, the original tax capacity of TIF District No.
9 is expected to be $4,554. The original tax capacity rate of TIF District No. 9 is estimated to be
123.582%. This rate is an estimate of the aggregate tax capacity rate applicable to property within
the TIF District.
The County auditor will increase or decrease the original tax capacity of TIF District No.
9 as a result of:
1. Change in the tax exempt status of property within the TIF District;
2. Reduction or enlargement of the geographic boundaries of the TIF District;
DJG131111 10
AL141-26
3. Reduction of valuation by means of a court -ordered abatement, stipulation
agreement, voluntary abatement made by the assessor or auditor or by order of the Minnesota
commissioner of revenue; or
4. Change in the classification of property within the TIF District to a classification
that has a different class rate.
T. Estimate of Captured Tax Capacity and Tax Increment
The City expects the improvements in the TIF District to be completed by January 2, 1998.
As of that date, the captured capacity is estimated to be $8,586. Accordingly, the first full tax
increment is estimated to be $10,611, payable in 1999. A complete schedule of estimated tax
increment from the TIF District is shown in Exhibit F.
Pursuant to Section 469.177, Subd. 2 of the TIF Act, it is found and declared that all of
the captured tax capacity generated within TIF District No. 9 is necessary to finance or otherwise
make permissible expenditures authorized by Section 469.176, Subd. 4 of the TIF Act.
U. Duration of the TIF District
In accordance with Section 469.176, Subd. 1(b) of the TIF Act, the City may continue to
receive TIF payments until the earlier of 9 years after the date of receipt of the first increment, or
11 years after the date of approval of this TIF Plan.
V. Estimate of Impact on Other Taxing Jurisdictions
The City believes that, because the development would not have occurred without tax
increment assistance, the TIF District has no impact on other taxing jurisdictions. However,
assuming the development would have occurred without tax increment assistance, making the
anticipated captured tax capacity available to other jurisdictions, the hypothetical impacts on other
jurisdictions are presented in Exhibit G.
W. Annual Financial Report
The City will file the annual reports with the State Auditor regarding all TIF Districts in
the City, as required in Sections 469.175, subds. 5, 6, and 6a of the TIF Act.
X. Notification of Prior Planned Improvements
Pursuant to Section 469.177, Subdivision 4 of the TIF Act, the City reviewed its records
with regard to the property within TIF District No. 9 and found that no building permits were
issued during the 18 months immediately preceding approval of the TIF Plan by the City.
Y. Assessment Agreements
Pursuant to Section 469.177, Subdivision 8 of the TIF Act, the City may execute an
assessment agreement in recordable form with the developer which establishes a minimum Market
DJG131111 11
AL141-26
value of land and improvements for the duration of TIF District No. 9. The Assessment
agreement, if any, shall be presented to the Wright County assessor who shall review the plans and
specifications for the improvements to be constructed, review the market value previously assigned
to the land upon which the improvements are to be constructed and so long as the minimum
market value contained in the assessment agreement appears in the judgment of the assessor to be
a reasonable estimate, the assessor may certify the minimum market value agreement. The
assessment agreement shall be filed of record in the office of the county recorder or the registrar
of titles of Wright County. Recording or filing of an assessment agreement complying with the
terms of Section 469.177, Subd. 8 of the TIF Act shall constitute notice of the agreement to any
subsequent purchaser or encumbrance of the land or any part thereof, whether voluntary or
involuntary, and shall be binding upon them.
Z. Local Government Aid/Homestead and Agricultural Credit Aid (LGA/HACA)
Pursuant to Minnesota Statutes, Section 273.1399, subd. 6(d), the City elects to make a
local contribution to pay costs of the project financed under this TIF Plan, in the amount equal to
10 percent of the annual tax increment. Therefore, the City anticipates that the TIF District will
be exempt from LGA/HACA loss.
The local contributions will be made from unrestricted funds of the City, and not from tax
increments or developer payments. The local contribution will not be used for general government
purposes or for improvements or costs that the City or the City planned absent the project.
4
DJG131111 1''G AL141-26
EXHIBIT A
MAP OF DEVELOPMENT DISTRICT NO. 1
and
TAX INCREMENT FINANCING DISTRICT NO. 9
DJG131111 fi-1
AL141-26
EXHIBIT 13
DESCRIPTION OF TAX INCREMENT ]FINANCING DISTRICT NO. 9
DJG131111 �_�
AL141-26
EXHIBIT C
TAX INCREMENT SCHEDULE
TAX INCREMENT FINANCING DISTRICT NO. 9
DJG131111 C_11 AL141-26
EXHIBIT D
IMPACT TABLE
TAX INCREMENT FINANCING DISTRICT NO. 9
DJG131111
AL141-26 D-1
CITY OF ALBERTVILLE O.-o
RESOLUTION NO. 1997-52
RESOLUTION APPROVING MODIFIED
DEVELOPMENT PROGRAM[ FOR DEVELOPMENT DISTRICT NO. 1
AND A TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENTFINANCING DISTRICT NO. 9
BE IT RESOLVED by the City Council ("Council") of the City of Albertville, Minnesota
("City") as follows:
Section 1. Recitals.
1.01. The City has previously established its Development District No. 1 pursuant to
Minn. Stat., Section 469.124 through 469.134 ("Development District Act").
1.02. The City has determined a need to modify the Development Program for the
Development District and to create TIF District No. 9 (the "TIF District") therein pursuant to
Minn. Stat., Section 469.174 through 469.179 ("TIF Act"), and to that end has caused to be
prepared a document titled "Modified Development Program, Development District No. 1 and
Tax Increment Financing Plan, Tax Increment Financing District No. 9, City of Albertville,
Minnesota," dated November 3, 1997.
1.03. The Development Program and Tax Increment Financing Plan for TIF District No.
9 ("TIF Plan") were, in accordance with the Development District Act and TIF Act, referred to
the Albertville Planning Commission, which found that they conform to the general plan for the
development of the City as a whole.
1.04. Estimates of the fiscal and economic implications of the TIF Plan were provided
to Independent School District No. 885 and Wright County at least 30 days before the Council's
public hearing on the TIF Plan.
1.05. This Council has fully reviewed the contents of the Development Program and TIF
Plan and on this date conducted a public hearing thereon at which the views of alb interested
persons were heard.
Section 2. Findings; Development District.
2.01. It is hereby found and determined that there is a need to modify the Development
Program for the Development District, in order to improve the tax base and employment
opportunities, and to provide an impetus for related housing development.
2.02. It is further specifically found and determined that:
DJG131119 1
AL141-26
a) the land within the Development District would not be made available for
development without the public intervention and financial assistance described in
the Development Program and TIF Plan;
b) the modified Development Program will afford maximum opportunity, consistent
with the sound needs of the City as a whole, for the development of the
Development District by private enterprise; and
c) the Development District and modified Development Program conform to the
general plan for development of the City as set forth in the comprehensive
municipal plan.
Section 3. Findings; TIF District No. 9.
3.01. It is found and determined'. that it is necessary and desirable for the sound and
orderly development of the Development District and the City as a whole, and for the protection
and preservation of the public health, safety, and general welfare, that the authority of the TIF
Act be exercised by the City to provide public financial assistance to the TIF and Development
Districts.
3.02. It is further found and determined, and it is the reasoned opinion of the City, that
anticipated development would not reasonably be expected to occur solely through private
investment within the reasonably foreseeable future and the increased market value of the site that
could reasonably be expected to occur without the use of tax increment financing would be less
than the increase in the market value estimated to result from the proposed development after
subtracting the present value of the projected tax increments for the maximum duration of the
district permitted by the TIF Plan;
3.03. The TIF Plan will afford maximum opportunity, consistent with the sound needs
of the City as a whole, for development of the District by private enterprise; and
3.04. The TIF Plan conforms to ;general plans for development of the City as a whole.
3.05. The proposed public improvements to be financed in part through tax increment
financing are necessary to permit the City to realize the full potential of the TIF and Development
Districts in terms of development intensity, employment opportunities and tax base.
i
3.06. TIF District No. 9 is an economic development district under Section 469.174,
subd. 12 of the TIF Act, based on the findings described in the TIF Plan, which are incorporated
herein by reference, and other records on, file with the City.
3.07. Pursuant to Minnesota Statutes, Section 273.1399, subd. 6(d), the City elects to
make a local contribution to pay costs of the project financed under this TIF Plan, in the amount
equal to 10 percent of the annual tax increment. Therefore, the City anticipates that the TIF
District will be exempt from LGA/HACA loss.
DJG131119 2
AL141-26
3.08. Reasons and facts supporting the findings under this Section are stated in the TIF
Plan. The City has also relied upon the reports and recommendations of its staff as well as the
personal knowledge of members of the City Council in reaching its conclusions regarding TIF
District No. 9.
Section 4. Development Program and TIF Plan Adopted; Certification; Filing.
4.01. The modified Development; Program and the TIF Plan are hereby approved and
adopted.
4.02. The geographic boundaries of the Development District and of the TIF District are
described in the Development Program and TIF Plan therefor, respectively, and are incorporated
herein by reference.
4.03. The City Administrator is authorized and directed to transmit a certified copy of
this resolution together with a certified copy of the Development Program and the TIF Plan to
the Auditor of Wright County with a request that the original tax capacity of the property within
TIF District No. 9 be certified to the City pursuant to Section 469.177, subd. 1 of the TIF Act,
and to file a copy of the Development Program and the TIF Plan with the Minnesota
Commissioner of Revenue as required by the TIF Act.
Adopted this 3rd day of November, 1997.
Mayor
Attest:
City Administrator
DJG131119 3
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Don R. Mleziva, Director
October 16, 1997
I4ir. Garrison L. Hale
Citv Administrator
5975 Main Avenue NB
P.O, Box 9
Albertville, NIN 55301
Dear Mr. Hale:
10 2nd Street NW, Room 300
Buffalo, MN 55313-1191
Social Services 682-7400
Public Houlth 682-7-156
Financial Services 682.7414
Tolt Free 1.800.362.3667
Fax 682-770 i
The Human Services Department of Wright County has been responsible for administering the County's
Transit and Volunteer Transportation Driver Program for many years.
Until 1995, the County's program consisted exclusively of paying the costs of volunteer drivers to transport
at -risk elderly, disabled, and indigent people to medical appointments and grocery shopping.
In 1995, the County introduced a combined County -City subsidized and rider fare -paid public transit
system, 'Flee River Rider, while still maintaining the Volunteer Driver Program for at -risk persons.
The original routes for the River Rider Program have been limited to select areas of the County - with
financial subsidy participation of cities on those routes to assist the County in meeting the costs of the
program.
In 1998, the system is being expanded to include additional route areas. Our Department is currently
working on establishing the County's budget for this program. We need to determine what the financial
participation will be from the cities that will have t:he River Rider available to their residents.
In the near future, our Agency's transit resources coordinator, Jeannie Fobbe, and her Supervisor, Bert
Bailey, will contact your City Council to discuss a transit budgetary allocation from your city for the River
Rider System. 4
This allocation will assist the County in meeting the costs of the River Ritter in your area. We are
requesting that AIbertville budget $2,366 to help defer the transit costs of your community.
If you need more information or further discussion before meeting with our staff, please call me at
682-7411. Thank you for your consideration.
Sincerely,
Don Mleziva
Human Services Director
DM:ag EQUAL OPPORTUNITY / AFFIRMATIVE ACTION EMPLOYER
WRIGHT COUNTY
4
HUMAN SERVICES AGENCY
10 2nd Street NW, Room 300
Buffalo, MN 55313-1191
Social Services 682-7400
Public Health 682-7456
Financial Services 682-7414
Toll Free 1-800-362-3667
Don R. Mleziva, Director Fax 682-7701
October 27, 1997
Mr. Garrison L.Hale
City Administrator
5975 Main Avenue NE
Albertville, MN 55301
Dear Mr. Hale:
The purpose of this letter is a follow-up to our phone conversation of last week. I will be at the
city council meeting on November 3, 1997 at 7:00 p.m.. I will be present to discuss the River
Rider and Volunteer Transportation systems currently used in Wright County. If you need any
thing further before that date please don't hesitate to call me at 612-628-7395.
Thank you.
WSincely,
Bert Bailey
Social Service Supervisor
EQUAL OPPORTUNITY / AFFIRMATIVE ACTION EMPLOYER
GRADING CONTRACT
City of Albertville
Cedar Creek Golf Course Property
AGREEMENT dated November , 1997 by and between the CITY OF
ALBERTVILLE, a municipal corporation ("City"), and PILOT LAND DEVELOPMENT
COMPANY, INC., a Minnesota corporation (the "Developer").
1. REQUEST FOR GRADING APPROVAL. The Developer has asked the City
to approve the grading for the Golf Course area (referred to in this contract as the "Golf
Course"). The City has granted PUD concept approval for the Cedar Creek PUD, and the
Developer now desires to grade the Golf Course before final approval of the Golf Course is
granted by the City.
2. CONDITIONS OF APPROVAL. The City hereby approves the grading on
the condition the Developer enter into this Contract, abide by its terms and furnish the
security required by it.
3. GRADING AND DRAINAGE PLAN. The Golf Course shall be graded in
accordance with the Grading and Drainage plan dated , 1997 and on file with
the City of Albertville, but the City engineer shall have the authority to limit the timing of
the grading with respect to any grading action which affects the flow of water in County
Ditch 99, said limitation to be applied by the City Engineer after consultation with the
Wright County Soil and Water Conservation District and/or the Wright County Board. The
plan shall not be attached to this permit. If the plan varies from the written terms of this
permit, the written terms of this agreement shall control.
4. TIME OF PERFORMANCE. The Developer shall complete the grading and
erosion control by October 31, 1998. The Developer may, however, request an extension of
time from the City. If an extension is granted, it shall be conditioned upon updating the
security posted by the Developer to reflect cost increases (if any) and the extended
completion date.
5. EROSION CONTROL. Developer shall implement all erosion conhbl
measures detailed on the Grading and Drainage plan (including construction of all ponds) in
the order required by the City Engineer. Developer shall also implement any additional
erosion control measures required by the City Engineer or the Wright County Soil and
Water Conservation District. All areas disturbed by the excavation and backfiling
operations shall be reseeded forthwith after the completion of the work in that area. Except
as otherwise provided in the erosion control plan, seed shall be rye grass or other fast-
growing seed suitable to the existing soil to provide a temporary ground cover as rapidly as
possible. All seeded areas shall be mulched and disc anchored as necessary for seed
1
retention. The parties recognize that time is of the essence in controlling erosion. If the
Developer does not comply with the erosion control plan and/or the requirements of the City
Engineer or Wright County Soil and Water Conservation District, the City may take such
action as it deems appropriate to control erosion, and the landowner hereby grants the City
permission to enter upon the land and take such necessary erosion control actions.. The
City will endeavor to notify the Developer in advance of any proposed action, but failure of
the City to do so will not affect the Developer's and City's rights or obligations hereunder.
If the Developer does not reimburse the City for any cost the City incurred for such work
within thirty (30) days, the City may draw down the letter of credit to pay any costs. No
development will be allowed and no building permits will be issued unless the Golf Course
is in full compliance with the erosion control requirements.
6. "AS BUILT" GRADING PLAN. Within thirty (30) days after completion of
the grading and before the City releases the security, the :Developer shall provide the City
with an "as constructed" grading plan.
7. CLEAN UP. The Developer shall promptly clean dirt and debris from streets
that has resulted from construction work by the Developer, its agents or assigns.
8. SECURITY. To guarantee compliance with the terms of this permit and to
reimburse the City for any damage to public property as a result of the grading permitted
herein, the Developer shall furnish the City with a cash escrow or irrevocable letter of credit
from a bank ("security") for $ .00. The bank and form of the letter of credit
shall be subject to the approval of the City Attorney. The letter of credit shall be for a term
ending November 30, 1998, and shall be renewed annually by the Developer until all
grading is complete as specified herein. The City reserves the right to draw on the letter of
credit anytime within 45 days of its expiration if the Developer does not provide the City
with a renewal or an acceptable substitute letter of credit.
9. RESPONSIBILITY FOR COSTS.
A. Except as otherwise specified herein, the Developer shall pay all costs
incurred by it or the City in conjunction with the grading; and erosion control, including but
not limited to Soil and Water Conservation District charges, legal, planning, engiAdering
and inspection expenses incurred in connection with approval and acceptance of the permit,
the preparation of this permit, and all costs and expenses incurred by the City in monitoring
and inspecting the grading and erosion control.
B. The Developer shall hold the City and its officers and employees
harmless from claims made by itself and third parties for damages sustained or costs
incurred resulting from permit approval and work done :in conjunction with it. The
Developer shall indemnify the City and its officers and employees for all costs, damages
2
and expenses which the City may pay or incur in consequence of such claims, including
attorney's fees.
C. The Developer shall reimburse the City for costs incurred in the
enforcement of this permit, including engineering and attorney's fees.
D. The Developer shall pay in full all bills submitted to it by the City for
obligations incurred under this permit within thirty (30) days after receipt. If the bills are
not paid on time, the City may halt all work and construction.
10. DEVELOPER'S DEFAULT. In the event of default by the Developer as to
any of the work to be performed by it hereunder, the City may, at its option, perform the
work and Developer shall promptly reimburse the City for any expense incurred by the City,
provided the Developer is first given notice of the work in default not less than 48 hours in
advance. This permit is a license for the City to act, and it shall not be necessary for the
City to seek a court order for permission to enter the land. When the City does any such
work, the City may, in addition to its other remedies, assess the cost of such in whole or in
part to the property under this agreement.
11. PLAT APPROVAL. The City's approval to grade the property is given without
prejudice to the City's right to approve or deny any or all future phases of the platting and/or
PUD process.
CITY OF ALBERTVILLE
I�
ATTEST:
Mark Olson, Mayor
Linda Houghton, City Clerk
DEVELOPER:
PILOT LAND DEVELOPMENT COMPANY,
INC.
BY:
Its President
3
STATE OF MINNESOTA )
) ss.
COUNTY OF WRIGHT )
The foregoing instrument was acknowledged before me this day of
1997, by Mark Olson as Mayor of the City of Albertville, a
Minnesota municipal corporation, on behalf of the city and pursuant to the authority of the
City Council.
Notary Public
STATE OF MINNESOTA )
) ss.
COUNTY OF WRIGHT )
The foregoing instrument was acknowledged before me this day of
, 1997, by Linda Houghton, as Clerk of the City of Albertville, a
Minnesota municipal corporation, on behalf of the city and pursuant to the authority of the
City Council.
Notary Public
STATE OF MINNESOTA )
) ss.
COUNTY OF WRIGHT )
The foregoing instrument was acknowledged before me this day of
, 1997, by Kent Roessler, as President of Pilot Land Decvelopment
Company, Inc.
Notary Public
1
BY:
Michael C. Couri
Radzwill & Couri
P.O. Box 369
705 Central Ave. E
St Michael, MN 55376
5
►►
IsRADING CONTRACT
City of Albertville
Mike Potter Property
AGREEMENT dated November , 1997 by and between the CITY OF
ALBERTVILLE, a municipal corporation ("City"), and Michael Potter, (the "Developer").
1. REQUEST FOR GRADING APPROVAL. The Developer has asked the City
to approve the grading for a parcel of land legally described as follows (referred to in this
contract as the "Property"), which the Developer now desires to partially fill and grade:
2. CONDITIONS OF APPROVAL. The City hereby approves the grading on
the condition the Developer enter into this Contract, abide by its terms and furnish the
security required by it.
3. GRADING AND DRAINAGE PLAN. The Property shall be graded in
accordance with the Grading and Drainage plan dated , 1997 and on file with
the City of Albertville. The plan shall not be attached to this permit. If the plan varies from
the written terms of this permit, the written terms of this agreement shall control.
4. TIlAE OF PERFORMANCE. The Developer shall complete the grading and
erosion control by October 31, 1998. The Developer may, however, request an extension of
time from the City. If an extension is granted, it shall be conditioned upon updating the
security posted by the Developer to reflect cost increases (if any) and the extended
completion date.
5. EROSION CONTROL. Developer shall implement all erosion control
measures detailed on the Grading and Drainage plan (including construction of all ponds) in
the order required by the City Engineer. Developer shall also implement any addiAanal
erosion control measures required by the City Engineer or the Wright County Soil and
Water Conservation District. All areas disturbed by the grading, excavation and backfilling
operations shall be reseeded forthwith after the completion of the work in that area. Except
as otherwise provided in the erosion control plan, seed shall be rye grass or other fast-
growing seed suitable to the existing soil to provide a temporary ground cover as rapidly as
possible. All seeded areas shall be mulched and disc anchored as necessary for seed
retention. The parties recognize that time is of the essence in controlling erosion. If the
Developer does not comply with -the erosion control plan and/or the requirements of the City
.. ,
Engineer or Wright County Soil and Water Conservation District, the City may take such
action as it deems appropriate to control erosion, and the landowner hereby grants the City
permission to enter upon the land and take such necessary erosion control actions.. The
City will endeavor to notify the Developer in advance of any proposed action, but failure of
the City to do so will not affect the Developer's and City's rights or obligations hereunder.
If the Developer does not reimburse the City for any cost the City incurred for such work
within thirty (30) days, the City may draw down the letter of credit to pay any costs. No
development will be allowed and no building permits will be issued unless the Property is in
full compliance with the erosion control requirements.
6. "AS BUILT' GRADING PLAN. Within thirty (30) days after completion of
the grading and before the City releases the security, the Developer shall provide the City
with an "as constructed" grading plan, unless waived by the City Engineer.
7. CLEAN UP. The Developer shall promptly clean dirt and debris from streets
that has resulted from construction work by the Developer, its agents or assigns.
,. 714W
8. SECURITY. To guarantee compliance with the terms of this permit and to
reimburse the City for any damage to public property as a result of the grading permitted
herein, the Developer shall fiunish the City with a cash escrow or irrevocable letter of credit
from a bank ("security") for $9. The bank and form of the letter of credit shall be
subject to the approval of the City Attorney. The letter of credit shall be for a term ending
November 30, 1998, and shall be renewed annually by the Developer until all grading is
complete as specified herein. The City reserves the right to draw on the letter of credit
anytime within 45 days of its expiration if the Developer does not provide the City with a
renewal or an acceptable substitute letter of credit
9. RESPONSIBILITY FOR COSTS.
A. Except as otherwise specified herein, the Developer shall pay all costs
incurred by it or the City in conjunction with the grading and erosion control, including but
not limited to Soil and Water Conservation District charges, legal, planning, engineering
and inspection expenses incurred in connection with approval and acceptance of the permit,
the preparation of this permit, and all costs and expenses incurred by the City in mbMtoring
and inspecting the grading and erosion control.
B. The Developer shall hold the City and its officers and employees
harmless from claims made by itself and third parties for damages sustained or costs
incurred resulting from permit approval and work done in conjunction with it. The
Developer shall indemnify the City and its officers and employees for all costs, damages
and expenses which the City may pay or incur in consequence of such claims, including
attorney's fees.
2
C. The Developer shall reimburse the City for costs incurred in the
enforcement of this permit, including engineering and attorney's fees.
D. The Developer shall pay in full all bills submitted to it by the City for
obligations incurred under this permit within thirty (30) days after receipt. If the bills are
not paid on time, the City may halt all work and construction.
10. DEVELOPER'S DEFAULT. In the event of default by the Developer as to
any of the work to be performed by it hereunder, the City may, at its option, perform the
work and Developer shall promptly reimburse the City for any expense incurred by the City,
provided the Developer is first given notice of the work in default not less than 48 hours in
advance. This permit is a license for the City to act, and it shall not be necessary for the
City to seek a court order for permission to enter the land. When the City does any such
work, the City may, in addition to its other remedies, assess the cost of such in whole or in
part to the property under this agreement.
11. PLAT APPROVAL. The City's approval to grade the property is given without
prejudice to the City's right to approve or deny any or all future phases of the platting
process.
CITY OF ALBERTVILLE
ATTEST:
Mark Olson, Mayor
Linda. Houghton, City Clerk
DEVELOPER:
MICHAEL POTTER
3
►►
" r 4 w
STATE OF MINNESOTA )
) ss.
COUNTY OF WRIGHT )
The foregoing instrument was acknowledged before me this day of
, 19972 by Mark Olson as Mayor of the City of Albertville, a
Minnesota municipal corporation, on behalf of the city and pursuant to the authority of the
City Council.
Notary Public
STATE OF MINNESOTA )
) ss.
COUNTY OF WRIGHT )
The foregoing instrument was acknowledged before me this day of
1997, by Linda Houghton, as Clerk of the City of Albertville, a
Minnesota municipal corporation, on behalf of the city and pursuant to the authority of the
City Council.
Notary Public
STATE OF MINNESOTA )
) ss.
COUNTY OF WRIGHT )
The foregoing instrument was acknowledged before me this
1997, by Michael Potter.
Notary Public
4
► day of